The novel Coronavirus (nCovid-19) has infiltrated in every business sector in India and the same goes well with the financial sectors or services. As soon as the World Health Organization has declared this outbreak a pandemic, the investors have started pulling out their money from the markets. The stock markets have crashed utterly through the world and central banks made off-cycle rate cuts and injected liquidity so that the economy can move in this steep situation.
This pandemic has motivated businesses to change their behavior and many banking and non-banking institutions are adopting digital banking as a consequence. Many customers are opting for digital banking services even those who once restricted online banking to lead a hassle-free life. The banking institutions, as well as customers, have realized how convenient it is to bank digitally and by doing this, they can easily avoid physical contact and human touching. Since the trending of digital banking is increasing hurriedly, in the aftermath of the Covid-19 crisis, it is expecting to see a significant acceleration of digital banking among the financial services. Here, we are mentioning some of the upcoming trends in the financial sector.
- Shifts in Digital customer experience:Because of the Covid-19 crisis, digital customer experience will be a chief area of differentiation and competition for all the financial institutions in India. Digital distribution channels will simply demonstrate the benefits of customer experience and thus, customer-focused banking experiences will be a top priority for all banking and financial institutions. Non-banking institutions like Muthoot Finance, Manappuram, etc. are offering many online loans (gold lending loans, microfinance, SME loan, etc.) and banking facilities to their customers. As per McKinsey, once your customers are satisfied with their digital experience, they will more likely to open new accounts with their existing bank. In upcoming days, it is expected that more digital marketing apps will be invented which will streamline all the banking operations and offer better user experience. These apps will certainly reduce the barrier between digital and financial literacy.
- The financial sector will transform from services to engagement: This is another upcoming trend that will be adopted by the financial institutions so that they can survive in the future. Once the COVID-19 will abate, customers won’t prefer to spend more time in branches because they are already habituated with digital banking. Now, in this scenario, the banks need to sell more products through digital channels to recompense for the reduction in sales through various branches. To achieve this, all the banks and financial institutions must develop digital marketing and personalization capabilities and should wisely utilize the data to understand the financial needs of their customers. As per the Harvard Business Review, “one of the most obvious consequences of the pandemic will be the infusion of data-enabled services into more aspects of life than ever.” By combining real-time campaign management along with unprecedented data analytics tools, banks can transform their customers’ data into meaningful insights and can take the right actions at the right time. This will help them to generate profit and revenue in the world of post-COVID-19.
- Should adopt next-gen technologies: Since banks and other financial institutions are going digital, hence, they need to deal with the accelerated pace and trends of the digital world. This means all the financial institutes need to adapt to changes and uncertainties at a breakneck pace. To cope up with the rapid changing of the digital world and clients, banks should adopt agile and scalable technologies like AI, machine learning, and cloud computing. These technologies are highly scalable, defter, and will significantly reduce the costs of processing and operations. By acquiring these next-gen technologies, banks can handle surges in incoming queries in a better way. The digital world will also force the banks to deliver the new enhancements and features through their apps so that the customers stay updated with them. Thus, banks will soon implement new software technologies like agile and continuous delivery to streamline their operations.
Covid-19 has created unfathomable damages in every business including the financial sector, still, in the future to intensify their growth, banks should accelerate their digital capabilities to handle the situation. The digital banking landscape will be completely different from the traditional one that preceded it. But these key digital trends will significantly reshape and uplift the growth of the financial sector after this pandemic.
About the Author
Jaidev Chatanat is a thought leader in the space of marketing intelligence, customer service and digital transformation. He has been an advocate for applying the right digital transformative strategies and techniques for many decades for fortune 500 companies.
He is reachable for consultation on email@example.com